Hudson-based Burton D. Morgan Foundation has received a $3.75 million grant from the Richard J. Fasenmyer Foundation to help strengthen the region's scaleup ecosytem through strategic initiatives, including Scalerator NEO.

The grant was announced Tuesday, Sept. 4, in a news release. The Morgan Foundation, which works to support youth, collegiate and adult entrepreneurs, said it will match all dollars awarded by the Fasenmyer Fund, according to the release.

The money will go toward "educational and network support to Northeast Ohio scaleup companies seeking to grow," the release said.

Among the initiatives is Scalerator NEO, a six-month cohort-based educational program for entrepreneurs and leaders who are open to learning new ways to grow their businesses. The program focuses on education, mentoring, and networking. The two foundations have collaborated on the initiative since 2016.

Scalerator NEO graduated 14 companies in its first cohort in 2017. Those companies — including a mix of manufacturers, software companies, and service providers — collectively had growth in earnings of 40% from 2016 to 2017, the Morgan Foundation told Crain's.

"With the infusion of funds, Morgan Foundation will be better positioned to advance a culture of growth in the region that will create fertile ground for the success of Scalerator NEO or similar programming focused on scaleups, enabling participating companies to achieve growth, expansion, and improved job creation," the release said.

The second Scalerator cohort is currently underway with 16 companies, and applications for the third cohort, scheduled to begin in spring, are being accepted at ScaleratorNEO.org.

The Fasenmyer grant will allow the Morgan Foundation to adjust and evolve the program to respond to the economy and shifts in Northeast Ohio's ecosystem, the release said.

"Morgan Foundation is greatly honored to be the recipient of this generous grant from Fasenmyer Foundation aimed at continuing our shared priority of promoting educational opportunities for promising scaleup companies seeking to grow," Morgan Foundation president Deborah Hoover said in the release. "Our Trustees and Staff thank Fasenmyer Foundation for the faith they have placed in our organization and we are committed to optimizing these resources to advance a culture of growth across our region."

The Morgan Foundation immediately will begin using the grant money toward the third cohort, the release said.

"The Fasenmyer Foundation is delighted to partner with the Morgan Foundation on this focused effort," Fasenmyer Foundation trustee John Baechle said in a statement. "The vitality of Northeast Ohio is dependent upon a prosperous, growing business community. This joint effort to support the growth of existing businesses is a key element to business retention and continuing job creation in our region."